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I have a question that just dawned on me. Because of my income, neither I nor my wife are eligable to open a Roth IRA (bummer). What if we filed seperately, could my wife qulalify (her income @30K, mine >160k). I know there would be other tax consiquences but not sure what they'd be.

JLC
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JLC writes:

I have a question that just dawned on me. Because of my income, neither I nor my wife are eligable to open a Roth IRA (bummer). What if we filed seperately, could my wife qulalify (her income @30K, mine >160k). I know there would be other tax consiquences but not sure what they'd be.

I reply:

The Roth phase-out range for taxpayers who use married-filing-separately status is $0-$10,000. Still want to try it? ;-) --Bob
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Greetings, JLC, and welcome. You asked:

<<I have a question that just dawned on me. Because of my income, neither I nor my wife are eligable to open a Roth IRA (bummer). What if we filed seperately, could my wife qulalify (her income @30K, mine >160k). I know there would be other tax consiquences but not sure what they'd be.>>

Nice try, but as Bob78164 pointed out the IRS and Congress made that approach virtually impossible. Married persons filing separately must contend with a phaseout range for Roth contributions that starts at $0 of modified adjusted gross income. At $10K, such filers cannot make a Roth contribution. There is one exception. If the couple is legally separated and they have lived apart on every day of the calendar year to which the contribution pertains, then they may use the single filer phaseout range of $95K to $110K to qualify for a Roth IRA contribution. Therefore, unless you go that route, neither you nor your spouse will be able to use the Roth at your income level. Still, all is not lost. You may continue to make a nondeductible contribution to a traditional IRA should you wish to do so.

Regards..Pixy
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I have a question that just dawned on me. Because of my income, neither I nor
my wife are eligable to open a Roth IRA (bummer). What if we filed seperately,
could my wife qulalify (her income @30K, mine >160k). I know there would be
other tax consiquences but not sure what they'd be.


You forgot that it seems to be the goverments policy to discourage marriage through higher taxes.
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<<You forgot that it seems to be the goverments policy to discourage marriage through higher taxes.>>

That and they also discriminate against people with jobs.

JLC
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